Technip to pick up Shaw technologies

Updated 6:11 pm, Tuesday, May 22, 2012

French oil service company Technip plans to buy most of the Shaw Group's energy and chemicals business for roughly $300 million, it said Monday.

Technip will acquire Shaw's Stone & Webster process technologies, giving it a stronger position as a technology provider for the refining and petrochemicals industries.

Low natural gas prices have translated into low feedstock prices for the petrochemical industry, an area in which Technip has already established itself.

"The acquisition of these world-class downstream technologies and high-quality engineering resources fits perfectly with Technip's strategy to differentiate itself through technology," Technip CEO Thierry Pilenko said in a statement.

Technip estimates the deal will double its current revenue for its unconventional services to about $500 million.

Under the deal, which is expected to close before Aug. 31, 1,200 workers will become employees of Technip, including roughly 500 in Houston.

The Shaw Group is an engineering and technology firm based in Baton Rouge, La.